DWIHN, Finance Committee

Detroit Wayne Integrated Health Network

Health

Wednesday, Aug. 7, 2024
1:00 p.m. EDT

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https://dwihn-org.zoom.us/j/91319481212

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Reporting

Edited and summarized by the Detroit - MI Documenters Team

Note-taking by Heidi Penix

The committee opened with a frank discussion of the Detroit Riverfront Conservancy and a thorough explanation of DWIHN's audit processes and segregation of duties meant to protect against fraud and embezzlement. The DWIHN budget approved for 2025 is roughly $1.165 billion.

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Live reporting by Amber Umscheid

Amber @organizedoracle

Good afternoon! I'll be live-tweeting the DWIHN Finance Committee Meeting at 1pm for @DetDocumenters. Media partners: @BridgeDet313 @chalkbeatDET @freep @media_outlier @metrotimes @michigan_public @PlanetDetroit @wdet @wxyzdetroit

11:50 AM Aug 7, 2024 CDT

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The Zoom link to join today's meeting can be found online >> dwihn.org/board-of-direc…

dwihn.org/board-of-direc…

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In addition to the Finance Committee Meeting at 1pm, there will be a Budget Hearing at 2pm on the same Zoom link so stay tuned!

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The meeting has been called to order at 1:08pm. All members are present.

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"Nothing of importance to call to your attention on the finance report, everything we are getting in is going out".

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Someone asked where to find the net surplus and they were directed to a bottom line cash number and mentions of capital assets and restrictions were made.

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Due to the recent allegations made against the Detroit Riverfront Conservancy () a report is being made today about DWIHN's Internal Control and Segregation of Duties to alleviate any concerns about this happening at DWIHN. freep.com/story/news/loc…

freep.com/story/news/loc…

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DWIHN's CFO Stacie Durant is sharing a presentation on the screen. Below is information from the actual federal indictment and criminal complaint.

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"Timeliness is important" A DWIHN senior accountant prepares monthly bank reconciliations and the CFO reviews & approves. The bank statements are obtained directly from online. Several finance staff have read-only access to bank and can view activity. This happens every ~45 days.

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Plante Moran as the audit firm directly sends bank confirmation to all financial institutions. The confirmations are "open" and request the balances of all account held by DWIHN. The institutions remit the confirmation directly to auditors.

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At DWIHN the process touches a lot of hands. In the audit, Plante Moran looks at a sample of contracts to review, receives full board minutes, and performs a visual walkthrough of purchase order process.

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A question was asked about a potential broken process of setting up vendors. The CFO shared DWIHN's process as one staff member enters vendor into system, a second person verifies information, a third person approves vendor.

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A lot of comments made about not understanding how the alleged party got away with this at the Riverfront Conservancy.. Reassurance given that DWIHN has several staff with eyes on all transactions and movement. A statement made that maybe Riverfront doesn't have as much staff.

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At DWIHN, the CEO is listed on the "Officers Certificate" and "Authorized Signers List" with all DWIHN financial institutes. Several staff have read-only access. Transfers require CEO and one other for approval.

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Plante Moran has been invited to today's meeting to answer any questions. Below is a letter to the DWIHN board from Plante Moran.

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Question: Is there a way the board can aim audits? Answer: Audits are not designed to detect fraud, the starting point should be what controls are in place to prevent one.

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Lengthy discussion of credit card usage and who should do reconciliations, internal or external. Plante Moran responded that they can make recommendations of best practices or other consultants can do a checks and balances process audit.

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With no unfinished business, no new business, and no public commenters, the finance committee meeting has called for adjournment at 2:28pm.

Amber @organizedoracle 19/34

Stay tuned for the Budget Hearing! The Zoom link is the same as above. They appear to be taking a break before calling the hearing to order.

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Here is the agenda for the budget hearing 👇

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Meeting has been called to order at 2:43pm. Agenda has been approved and we are moving to the budget summary presentation.

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FY 2025 Budget Summary - This budget is 2% more than FY2024 with explanations for the increase below.

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Discussing point d) and comments made that $21.4m is not sufficient for Detroit Wayne and general fund dollars to meet basic needs of community. Discussion around leveraging grant programs and advocating for more.

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COVID grants are not continuing which were $5.5m and a Mobile grant where $1.7m funds have been spent. Interest income is trending up so increasing that budget allocation to reflect actuals. Healthcare quality line item is considered administrative not program.

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Question and discussion about grant money that is carried over and how to proceed with it. It is supposed to be taken out of the income statement and put in as deferred revenue on the balance sheet.

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DWIHN is seeing the highest number of folks served last year in the past six years. DWIHN served over 11,000 kids last year.

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Going over budgets of residential services and mental health services. Covering the post Med Drop Enrollment and Pre Med Drop Analysis.

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First payment from the Opioid Settlement was received last week. Question asked that clarified that WSS and PPP are separate grants.

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A $10m overspend is projected for the general fund, a significant amount of local funds will be allocated to cover those costs.

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Currently reading this budget below out loud but with no added commentary.

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A verbal request was made for behavioral health specialists be provided on 9-1-1 calls and the cost to be covered from the DWIHN reserve. It was asked that criteria be figured out and a formal request be laid out.

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Discussion around being mindful what is put in for request because once something is implemented it is hard to have to take something away if funds shift or change so being mindful up front of those things.

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With no public commenters, the meeting was called adjourned at 4:22pm. That concludes today's tweets from DWIHN Finance. For more coverage, visit . If you believe anything inaccurate, email documenters@outliermedia.org with "Correction Request" in subject documenters.org

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Transcript and recording

By Noah Kincade 8/7/2024

Agency Information

Detroit Wayne Integrated Health Network

www.dwihn.org

(313) 833-2500

See Documenters reporting

“The Detroit Wayne Integrated Health Network is compassionate and committed to the 75,000 children and adults it serves in Detroit and Wayne County. We understand the immense responsibility we have been given and we go above and beyond in supporting the people we serve and the hundreds of Providers in our System of Care. Our Provider Network supports and serves individuals with serious mental illness, children with serious emotional disturbance, people with autism, individuals with intellectual and developmental disabilities and those with substance use disorder. We are Here to Talk. Here to Help.”